Letter of guarantee (bank guarantee)In Arabic: خطاب الضمان

Definition

A letter of guarantee (bank guarantee) is خطاب الضمان in Arabic: a bank’s written undertaking to pay the beneficiary a sum if the conditions of the letter are met. No article is stated until it is verified.

How it varies across the GCC

The letter-of-guarantee provisions of UAE Federal Decree-Law No. 50 of 2022 and the Saudi Central Bank rules are under review. Every state in the table is under review. The definition above is descriptive.

The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.

Basis by country